Ethereum Layer 2 network Kinto has announced it will cease operations on September 30 following a contract vulnerability attack on July 10. The attack resulted in the creation of 110,000 fake Kinto tokens, allowing the attacker to cash out approximately 577 ETH, worth around $1.55 million, causing the platform's token to plummet by about 95%. Despite efforts to relaunch through the "Phoenix" plan, mounting debts have hindered further financing. Kinto founder Ramón Recuero has pledged to personally compensate users with bad debts on Morpho, offering up to $1,100 per address. The platform will return 76% of the principal to Phoenix borrowers, with remaining assets allocated for compensation. Recuero emphasized a structured shutdown to protect user interests as much as possible.